EXISTING GOVERNMENT PROGRAMS WHICH MAY PROVIDE FUNDS FOR DAYCARE RELATED PURPOSES

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

Social Security and Rehabilitation Service.-Social Security Act, Title IV (A), as amended in 1967: child care services must be furnished to parents enrolled by the Labor Dept. in the extended, at state option, to former and potential AFUC beneficiaries. States have difficulty raising matching funds for mandatory portion and very few have exercised their option to extend coverage. Federal funds: 75% may be used for minor remodeling but not construction or major renovation. Federal appropriations for FY 1969 were $462 million.

Day Care Services.-Social Security Act, Title IV (B), as amended in 1967: grants-in-aid to State public welfare agencies for child welfare services, including provision of day care services. Each state is alloted $70,000 and remainder of appropriation is alloted on variable matching formula basis. Funds thus far have been utilized mainly at State Department level to set up day care administrative machinery, and little has gone for actual day care services. Funds may be used for minor remodeling but not for construction.

Federal appropriations for FY 1969 were $46 million, $3 million for actual day care.

Research and Demonstration Projects.-Social Security Act, Title IV (B), as amended in 1967: grants to public or other nonprofit institutions of higher learning or engaged in research or child welfare activities, but not to individuals. At present, priority is being given to proposals for projects related to child welfare services provided by social welfare agencies, including better ways to deliver these services.

Training Projects.-Social Security Act, Title IV (B): grants to public or other nonprofit institutions of higher learning for special projects for training personnel for work in the field of child welfare, including care. Grants may be used for teaching grants, traineeships, or short-term training activities for periods of up to five years.

Preventive Services.-Juvenile Delinquency Prevention and Control Act of 1968, Title I (C): grants to any local public agency or nonprofit private agency to promote the use of community-based services for the prevention of juvenile delinquency and to assist in development of special preventive services, such as the provision of day care services within the framework of larger programs providing educational and/or vocational training to unwed mothers or the establishment of day care facilities as part of a youth-operated service program.

Training.-Juvenile Delinquency Prevention and Control Act of 1968, Title II: grants to public or private nonprofit agencies for training personnel employed in fields related to the diagnosis, or treatment of youth who are, or in danger of becoming, delinquent. Programs might focus on training youth for employment in various human service fields including day care.

Improved Techniques and Practices.-Juvenile Delinquency Prevention and Control Act of 1968, Title III: grants or contracts to public or private agencies to develop improved techniques and practices which help prevent juvenile delinquency or rehabilitate delinquency youth. Experimental programs might include provision of day care services for children of mothers engaged in the larger programs and the employment of nonprofessionals in day care facilities.

OFFICE OF EDUCATION

Educationally Deprived Children in Low-Income Areas, Elementary and Secondary Education Act of 1965, Title I: grants for projects of local educational agencies which are designed to meet the needs of educationally deprived children, including those of preschool age. Funds may be used to add educational components to AFDC day care centers already established. States receive funds according to a formula.

The FY 1968, 746,000 children were served in full day programs at a cost of over $42 million.

Supplementary Centers and Services.-Elementary and Secondary Education Act of 1965, Title III: grants to local school districts to seek creative solutions to their educational problems, including new approaches to early childhood education.

There are 61 projects serving an estimated 40,000 preschool children at a cost of $3.1 million.

Research, Surveys, Demonstrations, and Dissemination.—Cooperative Research Act, as amended by Title IV, ESEA of 1965: Awards to universities and colleges and other public or private nonprofit agencies, and individuals for research and demonstrations in the field of education and dissemination of results. Includes early childhood education. Grants are for up to 95% of costs.

Vocational Education in Home Economics.-Vocational Education Act of 1963, Title I (A): grants to state boards for vocational education programs in occupations involving knowledge and skills in home economics-may include training of aides and assistants at day care centers.

Research, Experimentation, Development.-Vocational Education Act of 1963 Title I (C): Allotments to states for research, experimental programs, demonstration projects and development of new vocational curricula and of new careers and occupations in such fields as child care.

Work-Study Programs.-Higher Education Act of 1965, Title IV (C): grants to institutions of higher education to operate their work-study programs which may include placing the college students for up to 15 hrs. per week as aides in day care centers.

Educational Personnel Development Grants.-Higher Education Act of 1964, Title V, as amended by PL 90-35: awards to colleges and universities and state and local education agencies for training programs to improve and qualifications of persons serving in education programs—including preschool programs.

PUBLIC HEALTH SERVICE

Migrant Health.-Migrant Health Act of 1962, as amended: grants to public and to nonprofit agencies for family health service clinics for migratory workers and for other activities to improve their health services-this may cover support for health services for migrant children in day care centers.

Research Demonstration, Pilot Projects.-PL 78-410, as amended. Grants to investigators in universities, colleges, hospitals, or research institutions for research which may include projects relating to day care centers.

Experimental and Special Training Projects.—PL 79–487: Grants to eligible training settings for experimental projects for, among others, the development of training programs for persons whose roles may be related to mental health disciplines this may include personnel in day care centers.

Mental Health Continuing Education Programs.-PL 79-487, as amended: grants to public or private nonprofit institutions for projects to develop continuing education in the area of mental health, including child care.

Mental Health Facilities.-Community Mental Health Centers Construction Act of 1963, as amended: grants for construction, renovation or acquisition of community mental health center facilities — a child day care center may be part of a mental health center.

Mental Health Centers Staffing.-Community Mental Health Centers Construction Act of 1963, as amended: grants for the initial support of professional and technical personnel in community mental health centers—a child care center may be part of a mental health center.

(Note: For the four mental health programs above, estimated federal expenditures for FY 1968 in the child care area are $1 million.)

OFFICE OF CHILD DEVELOPMENT

Parent and Child Center Programs.-Economic Opportunity Act, Title II. A pilot effort launched in FY 1968 by the Office of Economic Opportunity to provide community action and other agencies with grants for the planning and development of parent and child centers for disadvantaged families with at least one child under three years of age. It offers many services similar to those now offered in the Headstart program to children aged 3-6, and plans to offer day care and nursery services for children and educational, recreational, health and counseling services for their parents.

It is estimated that about $5 million was spent for parent and child centers on an experimental basis in 1968, serving 3600 families.

Head Start Programs.-Economic Opportunity Act of 1964, Title II-A, as amended: grants to public or private nonprofit agencies, usually the community action agency, for projects which may include full day Headstart centers for 3, 4, and 5 year olds. Federal funds may provide up to 80% of the costs, and in very poor communities may reach 100%.

There are some 55,000 children in full-day Headstart programs, at an annual cost of $2000 per child.

OFFICE OF ECONOMIC OPPORTUNITY

Assistance for Migrants and Seasonal Farmworkers.-Economic Opportunity Act, Title III-B, as amended: grants to public and private nonprofit agencies and cooperatives to assist migrant and seasonal farmworkers and their families to improve their living conditions-may include day care for children.

FY 1968 expenditures for this program were almost $700,000.

Day Care Assistance.-Title V (B) of the Economic Opportunity Act of 1964, as amended in 1967. Financial assistance may be provided to public agencies and private organizations up to 90% of the cost of planning, conducting, administering, and evaluation projects under which children from low-income families or from urban and rural areas with large concentrations or proportions of lowincome persons may receive day care. Financial assistance may be provided to employers, labor unions, or joint employer-union organizations for day care projects established at or in association with a place of employment or training, where such projects are financed in major part through private funds. No funds have been appropriated for this program.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Neighborhood Facilities Grant Program.-Housing and Urban Development Act of 1965, Title VII: financial and technical assistance for the development of centers to house health, recreation, social, and other community services, including any care centers, for low and moderate income persons. Federal grant may cover up to two-thirds of the development cost of a facility, except in redevelopment areas designated by Dept. of Commerce where limit is three-fourths of funds. As of November 1967, out of 126 neighborhood facilities in operation, 67 had day care services. As of December, 1968, out of 246 applications, 124 included plans for day care services.

Indoor Community Facilities.-U.S. Housing Act of 1937, Section 2, as amended: Loans may be made to local housing authorities for the purpose of constructing or acquiring low-rent housing, including community facilities considered to be necessary appurtenances of the housing. Space may be provided or designated for a day care center where this is a priority need. Day care programs at low-rent projects serve primarily project residents but may also serve families in the surrounding neighborhood. In December, 1965, there were 270 facilities being used as day care centers on public housing sites, 279 off-site facilities being used for the same purpose.

Model Cities Programs.-Title I of the Demonstration Cities & Metropolitan Development Act of 1966: grants and technical assistance are provided to help selected communities of all sizes to plan, develop, and carry out model cities programs. Day care projects may be a part of a model cities program. 80% of the costs of planning and developing the program and 80% of the costs of administering the program are provided by the Federal Government.

The Tenant Services Grant Program.-Title II-B of the Housing and Urban Development Act of 1968. Authorizes the Secretary of the Department of Housing and Urban Development to enter into contracts to make grants to public housing agencies to assist in financing tenant services for families living in low-rent housing projects. Such tenant services may include child care.

No appropriations for FY 1969.

DEPARTMENT OF LABOR

Experimental, Developmental, Demonstration, and Pilot Projects-Title I of the Manpower Development and Training Act of 1962, as amended. Assistance may be given through grants to or contracts with public or private non-profit organizations, or through contracts with other private organizations, for the purpose of improving techniques and demonstrating the effectiveness of specialized methods in meeting manpower, employment, and training problems of worker groups. Manpower training programs which utilize day-care services in an innovative way may be eligible projects.

Neighborhood Youth Corps.-Title I-B of the Economic Opportunity Act of 1964, as amended. Assistance may be given to local sponsors for developing and operating programs that provide young men and women from low-income families with a broad range of work experience opportunities. Thus, Neighborhood Youth

Corps enrollees may be assigned as day-care aides. In-school programs may enroll students and recent drop-outs 14 to 21 years of age. Enrollees in out-of-school projects must be unemployed and at least 16 years of age.

Special Impact Program.—Title I-D of the Economic Opportunity Act of 1964, as amended.

Local sponsors may develop and operate projects that aim at solving critical problems facing urban areas with large numbers of low-income persons. The projects concentrate on work training that will result in improvements in the neighborhoods where participants live. Project activities may include developing day-care programs.

Operation Mainstream.-Title II, section 205 (d), of the Economic Opportunity Act of 1964, as amended.

Local sponsors may develop and operate work experience and training projects for poor adults with a history of chronic unemployment. The projects—which may include day-care centers-concentrate on activities that will improve both rural areas and towns or particular low-income areas where projects take place. To be eligible, individuals must be at least 22 years of age and come from families with annual income below the poverty line. Participants also must have been unemployed for more than 15 consecutive weeks, repeatedly unemployed during the past 2 years, or employed less than 20 hours a week for more than 26 consecutive weeks.

New Careers.-Title II, Section 205 (e), of the Economic Opportunity Act of 1964, as amended.

The program is designed to meet critical local shortages of personnel in such essential fields as health and education by re-engineering profesional jobs, extracting tasks that require less than professional training, and establishing specifications for new jobs. Ninety percent of the participants must be at least 22 years of age, while 10 percent may be between the ages of 18 and 21 and unemployed.

Work Incentive Program.-Title IV-B of the Social Security Act, as amended. These projects will seek to increase the employability of persons over 16 years of age and out of school who are welfare recipients and not immediately employable. State and local manpower agencies deliver manpower services. The Manpower Administration has the responsibility for providing training and work experience. Programmatically, State and local welfare agencies concentrate their activities in providing social services necessary to assist family groups Day-care services are provided for the children of trainees; trainees may prepare for work in child care centers.

On-The-Job-Training Program. Title II of the Manpower Development and Training Act of 1962.

This act was created primarily to give job skills to the unemployed, underemployed, and workers whose jobs are endangered by changing technology. Employers, labor organizations, trade associations, and public and private agencies are able to obtain Federal funds for OJT programs for training in day-care occupations. The Bureau of Work Training Programs negotiates with each OJT contractor for the sharing of direct training costs. Reimbursement for training costs may vary for each occupation in each contract.

Concentrated Employment Program. Title I-B of the Economic Opportunity Act of 1964, as amended and Title II of the Manpower Development and Training Act of 1962, as amended.

The Concentrated Employment Program is a system of delivering manpower services in one package rather than in separate programs. Working through a single contract with a single sponsor, the Manpower Administration provides a flexible package of manpower programs under the EOA and MDTA, including outreach and recruitment; orientation; counseling and job coaching; basic education; various medical, day-care, and other supportive services; work experience or vocational training under a variety of individual manpower programs; job development and placement; and individualized follow-up after placement. Training and Skill Development Programs.-Title II of the Manpower Development and Training Act of 1962, as amended.

State employment service offices and State vocational education offices may develop programs jointly for institutional training in day-care occupations. The employment service has responsibility for the certification of training needs in specific occupational areas. Unmet needs for workers in day-care facilities may be brought to the attention of the employment service by individuals, community groups, or government agencies, and training programs.

SMALL BUSINESS ADMINISTRATION

Business Loans.-Section 7(a) of the Small Business Act of 1953, as amended. Small businesses that are unable to obtain credit elsewhere on reasonable terms may apply for a loan. Such firms must be organized for making a profit, since SBA does not make business loans to non-profit enterprises. Persons operating day-care centers may be eligible for a bank loan that is guaranteed by SBA, or one in which the bank and SBA participate jointly. In accordance with SBA standards, a business must be small in order to qualify for a loan. Most day-care centers could qualify in this respect. In FY 1968, SBA made 32 loans to day-care centers—gross, $764,000; SBA share, $700,000.

Economic Opportunity Loans.-Title IV of the Economic Opportunity Act of 1964, as amended.

Persons whose incomes are below that required to meet basic needs, or small business concerns located in areas with high proportions of unemployed or lowincome individuals, or those who have lacked the opportunity to acquire capital to establish, expand, or strengthen a small business, may apply for an economic opportunity loan to establish a day-care center. Such loans may be applied for at any SBA regional office.

Lease Guarantee Program.-Title IV of the Small Business Investment Act of 1958, as amended. Any small business-whether a retailer, wholesaler, manufacturer, or service establishment-—may qualify for this insurance. For lease guarantee purposes, SBA defines a small business as one that is independently owned and operated, non-denominant in its field, and meets employment or sales standards developed by the agency. The shortest term for this insurance is 5 years; the longest, 20 years. SBA will issue direct lease guarantee insurance policies only on 15 or longer. Lease guarantees for shorter periods must be SBA participation policies written by private insurance companies.

DEPARTMENT OF AGRICULTURE

National School Lunch Program.-The National School Lunch Act of 1946, as amended, and sections 5 and 12 of the Child Nutrition Act of 1966. All public and nonprofit private schools of high school grade or under may apply for participation. This covers preschool programs (including day care centers) only when they are operated as part of the school system. The general purpose of both acts is to safeguard the health and well-being of the Nation's children and to encourage the domestic consumption of nutritious agricultural commodities and other foods, by Federal assistance to the states for the establishment, maintenance, operation, and expansion of nonprofit school lunch programs.

School Breakfast Program.-All public and nonprofit private schools of high school grade or under may apply for participation. This covers preschool programs (including day care centers) only when they are operated as part of the school system. To the extent practicable, first consideration is given to schools drawing attendance from areas in which poor economic conditions exist and to schools in which a substantial proportion of the children enrolled must travel long distances daily.

Special Milk Program.-Section 3 of the Child Nutrition Act of 1966, (Public Law 89-642). All public and nonprofit private schools of high school grade and under, nonprofit nursery schools, child care centers, settlement housed, summer camps, and similar nonprofit institutions that provide for the care and training of children are eligible. Estimated expenditures for milk programs for preschool children in 1969 was $3.1 million in 2300 centers.

Special Food Service Program For Children.-Section 13 of the National School Lunch Act, as amended in 1968. All public and nonprofit service institutions such as child day care centers, settlement houses, or recreation centers that provide day care or other child care, where children are not maintained in residence, for children from areas in which poor economic conditions exist, or areas in which there are high concentrations of working mothers, may apply for participation. Public or private institutions that develop a special summer program providing for children from such areas food service similar to that available to children under the National School Lunch or School Breakfast Programs during the school year and public or private nonprofit institutions providing day care services for handicapped children from such areas may also apply for participation. Institutions may not participate in this program and the Special Milk Program at the same time.